Good Drivers Hit Most As Insurance Rates Soar

Auto insurance rates in South Florida, already among the highest in the nation, rose sharply again this year as most major companies hiked premiums between 15 and 35 percent.

Good drivers got socked with the steepest increases.

Figures compiled by the state Department of Insurance show that low-risk drivers in South Florida now pay the state`s largest auto insurers at least $100 more a year for standard coverage than they did in October 1986.

The figures were obtained by comparing the 1986 and 1987 editions of the insurance department`s annual Automobile Insurance Shopper`s Guide, which compares the cost of policies issued by various companies.

The 1987 guide will be released in Tallahassee on Wednesday, and copies will be shipped to local offices next week for distribution to the public.

Generally, the largest price increases over last year`s state insurance guide were not in high-risk insurance classes. Rates quoted for drivers who have good driving records showed many of the highest percentage and dollar increases.

``Rates have a lot to do with the losses companies suffer in a particular county,`` said Al Orendorff, a spokesman for Allstate Insurance. ``If you live in a county that has a lot of traffic, accidents and lawsuits, that would probably dictate rate increases.``

Allstate`s rates went up only slightly in Miami, but the company`s policyholders in Fort Lauderdale were hit with a 39 percent increase, and rates for those in West Palm Beach went up 32 percent.

The highest rates in the guide are from the Florida Joint Underwriting Association, the state`s high-risk insurance pool. FJUA rates rose by 23 percent, to $2,350 per year, in Miami and by 29 percent, to $1,823, in Fort Lauderdale. FJUA rates decreased by 1 percent, to $1,328, in West Palm Beach.

The state guide lists insurance prices for a 40-year-old man who has a clean driving record over the past three years, a new mid-size car, and no young drivers on the policy.

The guide`s sample driver is what many companies would consider an ideal customer, said Linda Meadows, spokeswoman for the Department of Insurance. Anyone with a less-than-perfect driving record would probably pay more than the guide`s listings.

``Each customer is going to have their own particular situation, and rates vary according to age, sex, type of car, driving history and other factors,`` Meadows said.

In Fort Lauderdale, 11 of the top 17 insurance firms raised rates by at least $100 for the guide`s ideal driver, with most annual rates now in the $600 to $700 range. Insurance rates in Fort Lauderdale are the second highest in Florida, behind Miami.

Most rates in Miami ranged from $800 to $1,200, up from the $700 to $1,000 range in last year`s Auto Insurance Shopper`s Guide.

In West Palm Beach, all but one of the top 17 insurers raised prices for the guide`s ideal customer. Eleven companies increased rates by at least $100, the guide says. West Palm Beach ranks third statewide in insurance prices.

Insurance companies that cater to safe drivers also increased rates, in one extreme case by as much as 51 percent, but generally by 15 to 35 percent.

State Farm, Florida`s largest auto insurer, raised rates by more than 20 percent -- more than $100 -- for the ideal customer in South Florida, according to the guide.

The ideal customer`s annual rates for State Farm`s low-risk insurance rose from $678 to $819 in Miami, from $568 to $685 in Fort Lauderdale and from $438 to $583 in West Palm Beach, the guide says.

In State Farm`s higher-risk ``Fire & Casualty`` class, the guide posted rate decreases of 3 percent in Miami and 9 percent in Fort Lauderdale and an increase of 2 percent in West Palm Beach.

The guide`s listing for Allstate Insurance rose slightly in Miami, from $1,026 to $1,061. But the Allstate listing increased 39 percent, from $578 to $807, in Fort Lauderdale, and 32 percent, from $466 to $619, in West Palm Beach.

The increases that the guide listed for State Farm and Allstate were typical of the increases listed for other major companies.

``Prices are usually higher in cities,`` said Allstate`s Orendorff. ``In some cities, you`ve got increased cases of fraud, more thefts and more people driving. All of these things influence rates to an extent.``

The highest auto insurance rates in the country last year were in central Los Angeles, Manhattan, central Detroit, central Boston and Miami, according to an insurance company survey. A comparable survey of this year`s rates was not available, but the increases noted in the state shopper`s guide seem likely to keep South Florida`s rates near the top of the national rankings.

Insurance experts say South Florida`s rates are high because of crowded roads, frequent lawsuits and large numbers of uninsured drivers.

``All sorts of variables figure into calculation of rates,`` Meadows said. ``In addition to traffic considerations, population, crime and variables like that figure in heavily.``

INFORMATION

To obtain a free copy of the state`s Automobile Insurance Shopper`s Guide:

-- Call the toll-free Insurance Consumer Hotline, 1-800-342-2762.

-- In Miami, call 377-5235 or visit the office at 401 NW Second Ave., Room 750.